Bank of America desires to draw and retain one of the best expertise, and the financial institution is prepared to pay additional for it, CEO Brian Moynihan mentioned Thursday.
“We wish that form of expertise in our firm and we’re prepared to pay what it takes to get it,” Moynihan instructed CNBC’s Jim Cramer in a “Mad Money” interview.
Moynihan’s feedback got here after Financial institution of America introduced Tuesday that it might hike its minimum wage to $25 per hour by 2025. The transfer additionally places stress on U.S. distributors working with Financial institution of America to pay their workers at the least $15 per hour.
“We’re pushing the wages up as a result of, frankly, we wish our teammates to have a profession mindset once they be a part of us after which stick with us,” the manager mentioned.
Moynihan additionally mentioned the financial institution — the second-biggest by property within the U.S. — is seeing constructive reception amongst employees because it started contemplating elevating wages a decade in the past. That is the third consecutive yr that the Charlotte, N.C.-based financial institution introduced a plan to extend wages.
Financial institution of America’s minimal wage rose to $20 in March 2020 from $17 in 2019. In the meantime, worker turnover fell to 7% in 2020 from 11% the yr prior, based on data offered to shareholders this previous March.
“Turnover is means down, the individuals are extra dedicated to the corporate, they do a greater job for our teammates,” Moynihan mentioned Thursday. “You possibly can’t consider a yr [in] which these teammates needed to do quite a bit for our clients and shoppers, which was final yr up till now in a pandemic.”
Moynihan additionally instructed Cramer that the corporate didn’t lay off department staff throughout the Covid-19 pandemic.
Financial institution of America shares slid 0.24% on Thursday to shut at $41.87. The inventory has rallied 38% yr up to now.